(A) ** investors who feared that they would pay off loans panicked, selling off all their stocks
(B) business leaders began selling off shares in their companies
(C) banks refused to issue credit to middle class investors
(D) the stock market shut down for a week
EXPLANATIONS BELOW
Concept note-1: -The main cause of the Wall Street crash of 1929 was the long period of speculation that preceded it, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels.
Concept note-2: -The situation worsened yet again on the infamous Black Tuesday, October 29, 1929, when more than 16 million stocks were traded. The stock market ultimately lost $14 billion that day.
Concept note-3: -The Market-And People-Were Overconfident That same sense of reckless overconfidence extended to average consumers and small investors, too, leading to an “asset bubble.” The crash happened after a long period of rising market growth that led to consumer overconfidence.
Concept note-4: -The crash frightened investors and consumers. Men and women lost their life savings, feared for their jobs, and worried whether they could pay their bills. Fear and uncertainty reduced purchases of big ticket items, like automobiles, that people bought with credit.